As we look ahead to the coming week, Singapore’s market is set to navigate through a mix of domestic economic indicators and significant international data releases, which together will shape the outlook for the city-state’s economy and its financial markets.
One of the pivotal data points to watch is Singapore’s balance of trade for May. In April 2024, Singapore recorded a trade surplus of S$4,525.96 million. Analysts forecast the balance of trade to increase to S$6,400 million by the end of this quarter, suggesting strong external demand and efficient trade operations.
Another significant indicator is the performance of Singapore’s Non-oil Domestic Exports (NODX) in May. In April, NODX fell by 9.3% year-on-year, a slightly better performance than the market forecast of a 10% decline. The expected easing of the NODX decline to 8% by the end of this quarter signals potential stabilisation in export demand.
The Monetary Authority of Singapore (MAS) will also be in focus with several key bill auctions. The yields on these bills provide insights into the market’s expectations for short-term interest rates and liquidity conditions. By the end of this quarter, the 12-week bill yield is expected to trade at 3.84%, the 4-week bill yield is anticipated to be at 3.85%, and the 6-month Treasury bill yield at 3.63%.
In the corporate sector, Top Glove Corporation Bhd (SGX:BVA) will release its Q3 FY2024 earnings. As a major player in the glove manufacturing industry, Top Glove’s performance will be closely watched for signs of recovery amid pricing pressures.
Internationally, China will release its industrial production and retail sales data for May. Industrial production is expected to moderate to 6.4% year-on-year from the previous 6.7%, while retail sales are anticipated to improve to 3% from the prior 2.3%, which marked a 15-month low. These figures are critical for assessing China’s economic recovery and the effectiveness of its accommodative policies.
In the United States, key data releases include Retail Sales for May, with an expected growth of 0.3%, following a flat performance in April. Other important releases include Industrial Production for May, Existing Home Sales for May, and the Manufacturing and Services Purchasing Managers’ Indices (PMIs) for June.
In summary, the anticipated trade surplus and a potential easing in the decline of NODX are positive signs for Singapore’s economy. Meanwhile, the MAS bill auctions will offer crucial insights into short-term financial conditions. New data from China and the US will gauge external factors that might influence Singapore’s market in the coming weeks.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
